NH House Speaker Announces Members of Special Committee on Defined Contribution Retirement Plans for Public Employees

CONCORD – House Speaker William O’Brien today announced the formation of the Special House Committee on Defined Contribution Retirement Plans for Public Employees, which will consist of 11 House members. The special committee will research and recommendations on the details and the procedures for the transition from the current defined benefit plan applicable to New Hampshire public employees to a defined public employee contribution plan for all new state employee hires, and for other New Hampshire local and county governments that may elect to participate. 

The Committee is further authorized to issue requests for proposals/information from potential vendors, study the proposals received, and recommend legislation to implement a defined public employee contribution plan based on one or more proposals.

The following House members are appointed to the Committee: Rep. Will Smith, Chairman; Rep. Neal Kurk; Rep. David Hess; Rep. Carol McGuire; Rep. Spec Bowers; Rep. Greg Hill; Rep. Tom Keane; Rep. Steve Winter; Rep. David Campbell; Rep. Robert Foose; and Rep. Steve Shurtleff

House Speaker William O’Brien

“The New Hampshire retirement system has an estimated unfunded pension liability of $3.7 billion and another $1.5 billion in other unfunded post-employment benefits. The current level of benefits for public employees is unsustainable and taxpayers just can’t foot the bill in this recessionary climate. I’m confident this Committee will work quickly and thoroughly to move toward a Defined Contribution Plan that will save taxpayers money while also bringing about long-term solvency to the system.”

Rep. Will Smith, Chairman of Special House Committee on Defined Contribution

“States’ retiree pensions and other benefits represent a nation-wide problem, with long-term cost estimated at $2.73 trillion, according to the Pew Charitable Trusts' Center on the States. Just as the private sector has done to remedy a broken retirement system, we need to move New Hampshire’s public sector toward replacing defined benefit pension plans with defined contribution plans to ensure the system is financially sound, while at the same time providing fair benefits to the employee. Uncertainties in future market returns, rapid increases in medical costs, increases in life expectancy, and slower growth in public sector employment require a more prudent long-term approach to assure financial viability. 

Defined contribution plans give an employee the ability to build family wealth in face of job mobility and inflationary pressures. The special committee will work hard to review, research and evaluate information to make recommendations to the House for this transition.”

NHGOP Chairman Statement on Lynch Pension Reform Veto

JOHN LYNCH PENSION REFORM VETO SETTING THE AGENDA FOR UNION BOSSES

CONCORD- Jack Kimball, Chairman of the New Hampshire Republican Party today released the following statement on Governor John Lynch's veto of SB3.

 "John Lynch is a union-pocket politician who has taken tens of thousands in campaign contributions from unions and union bosses.   He has proven he is only interested in setting the agenda for the union bosses and not the taxpayers."

NHGOP STATEMENT ON HOUSE PASSAGE OF PENSION REFORM

CONCORD –Jack Kimball, Chairman of the New Hampshire Republican Party today released the following statement regarding the passage of pension reform by the House.

“I commend the House and the Senate for their common sense solutions to reform the state’s broken retirement system.  They focused on the financial viability of the state and they're protecting the taxpayers.”

“John Lynch and his Democrat protectors had taken us down an unsustainable path with billions in unfunded liabilities, bloated pensions and out-of-control spending.”

“With Republicans in the majority, we're finally handling our problems in Concord like responsible adults.  And Right to Work is next, whether Governor Lynch likes it or not.”

New Hampshire House Passes Pension Reform

CONCORD – The House today passed SB 3, which would make a number of reforms to the current state retirement system.  It passed in a Roll Call vote of         250-112..

SB3 will:

• Limit the impact on retired members and those already vested in the system.
• Ensure cities and towns can continue to hire necessary personnel on a part-time basis.
• Put an end to spiking by curtailing the use of extra and special duty pay and eliminating the inclusion of end of career buyouts for non-vested and new hires.
• Cap the annual pensions benefit at $120,000 or 85% of average final compensation. 
• Immediately begin to improve the actuarial health of the system by slightly increasing rates for all Group I and II employees.

House leaders offered the following statements:

House Speaker William O’Brien:

“Reform to the retirement system was needed and a long time coming. For years it has been apparent that New Hampshire should address the major problems within our current retirement system including the large and growing unfunded liability of over $3.5 billion. This legislation significantly reforms the state employee retirement system to strengthen it financially for the future. I commend my colleagues in the House and Senate for their hard work on getting this common sense solution passed.”

House Majority Leader D.J. Bettencourt:

“The reforms that we passed today are reasonable and will dramatically improve on th e billions of dollars in unfunded liability within the retirement system.   While it may not be perfect,  I believe that we are headed in the right direction with the passage of this legislation.  We will continue to support any future reform of our retirement system that will help to ensure  financial solvency without passing on higher costs to the taxpayers.  It was important to me that we were fair to workers while making difficult but necessary reforms and I know the committee did the best they could. The passage of SB 3 ensures that the retirement system will continue to work for our retirees, employees, future employees, and the taxpayers of New Hampshire."